General credit card knowledge

Plastic money, more often than not, is a young adult’s first big step into building your credit history and score. It can be the one thing which helps you establish whether you’ll be a reliable borrower when you move on to make larger, long-term purchases.

Here are three ways you credit cards can help your financial life:

Establishes your credit

The idea with a credit card is to show you’re a reliable borrower. The ability to keep your utilization rate low will eventually appear on your credit history and will help increase your credit score in the long run.

Eliminates need for deposits

Most hotels, car rental companies and similar types of businesses will require customers to provide a credit card on file to reserve such services. If you don’t have a credit card, you you’ll be required to put down a cash deposit. This can sometimes be as low as $50 or as high as a few hundred dollars, depending on the business and your intentions. If you have a credit card, you don’t need to worry about that sort of thing.

Great for emergencies

Imagine you’re 200 miles from home when your car engines dies. Your auto insurance doesn’t cover towing. The tow company requires that you pay up front before you get towed anywhere. Having a credit card, even with a limit of a few hundred dollars, can help you get home. It can make the difference between getting home and being stuck in the middle of nowhere.

Apply for a Travis Credit Union credit card today!

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